Fallon & Byrne granted new drinks license
Fallon & Byrne, the restaurateur and gourmet food supplies business that entered into examinership last year, was today granted a new drinks license by the Circuit Civil Court for its Exchequer Street, Dublin, restaurant.
When the company buckled under outstanding debts of €1.4m to the Revenue Commissioners in December last year, Gary McCarthy, S.C., told the High Court it had been unable to get a tax clearance certificate which was necessary to renew the drinks sales license.
In the Circuit Court today, barrister Niki Andrews said the High Court, which took the debt-ridden company into its protection on December 30 last, had granted approval for legal proceedings to be issued to obtain a new license.
The application was made by company director Paul Byrne who confirmed that the company was continuing business under the direction of Examiner Neil Hughes of Hughes Blake, Chartered Accountants.
Mr Mc Carthy, who appeared with Ross Gorman BL., told the earlier court that while the company was still making a profit on an €8m sales turnover, it had found itself unable to meet its historic and current tax liabilities.
The Revenue Commissioners had served a petition to wind up the company but the directors Paul Byrne and Fiona McHugh, felt there still were strong prospects of its survival under examinership.
Mr McCarthy said the company’s problems had arisen mainly from a decision of Byrne and McHugh to concentrate on front-of-house duties while leaving financial administration to an under-qualified book keeper member of Mr Byrne’s family.
Unbeknownst to the directors, substantial arrears of taxes in the region of €840,000 had been allowed to build up despite relevant returns having been made to the Revenue Commissioner who, eventually, issued letters of demand and ultimately a petition to wind up the company.
Mr McCarthy told the court the ability of the financial administrator to mask such a significant tax liability from the directors was a fundamental weakness in the systems the directors had put in place when the company was established in 2006.
The court heard that a team of accountants called in to represent the company during an audit had discovered a number of inaccuracies and discrepancies in record-keeping, and that they had found the financial administrator had misappropriated company funds of at least €223,000 over a number of years.
The court was also told that the un-named family member responsible had suffered a psychological breakdown and ceased to be employed. She was not in a position to compensate the company.
The company continues to operate under examinership which, from January 12 last, gave it protection of the High Court from its creditors.
